Dynavax Reports Fourth Quarter and Year End 2014 Financial Results

The Company had $122.7 million in cash, cash equivalents and marketable securities as of December 31, 2014. Loss from operations of $91.3 million for the year ended December 31, 2014 increased by $24.8 million compared to the year ended December 31, 2013 primarily as a result of expenses relating to conduct of clinical trials. A Phase 3 clinical trial of hepatitis B vaccine HEPLISAV-B™ (known as HBV-23) was initiated in the second quarter of 2014 and an independent Data and Safety Monitoring Board (DSMB) reviewed available data in early November 2014 and late February 2015 and recommended continuation of the trial without change. A Phase 1/2 study of SD-101 in combination with local radiation for the treatment of indolent lymphoma was initiated in the
fourth quarter.

The net loss allocable to common stockholders for the twelve months ended December 31, 2014 was $90.7 million, or $3.45 per basic and diluted share. The net loss allocable to common stockholders for the twelve months ended December 31, 2013 was $75.2 million, or $3.83 per basic and diluted share, which includes a one-time non-cash deemed dividend of $8.5 million related to the beneficial conversion feature of the Series B Convertible Preferred Stock.

SD-101 is a proprietary, second-generation, TLR 9 agonist CpG oligodeoxynucleotide (CPG ODN). In preclinical studies, TLR 9 agonists have shown activity as monotherapy or in combination with various interventions, including immunotherapeutic and tumor-specific antibodies. SD-101 has been evaluated in two Phase 1 studies to assess its preliminary safety and tolerability.

About Dynavax

Dynavax, a clinical-stage biopharmaceutical company, discovers and develops novel vaccines and therapeutics in the areas of infectious and inflammatory diseases and oncology. Dynavax's lead product candidate is HEPLISAV-B, a Phase 3 investigational adult hepatitis B vaccine. For more information visit www.dynavax.com.

DYNAVAX TECHNOLOGIES CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(Unaudited)

Three Months EndedDecember 31,

Years EndedDecember 31,

2014

2013

2014

2013

Revenues:

Collaboration revenue

$

1,734

$

1,580

$

7,933

$

4,929

Grant revenue

142

1,283

2,688

5,138

Service and license revenue

401

(16

)

411

1,184

Total revenues

2,277

2,847

11,032

11,251

Operating expenses:

Research and development

19,638

12,131

84,580

50,870

General and administrative

5,052

3,700

17,377

25,943

Unoccupied facility expense

--

8

386

926

Total operating expenses

24,690

15,839

102,343

77,739

Loss from operations

(22,413

)

(12,992

)

(91,311

)

(66,488

)

Interest income

29

(47

)

191

116

Interest expense

(35

)

83

(35

)

--

Other income (expense), net

133

(100

)

433

(348

)

Net loss

(22,286

)

(13,056

)

(90,722

)

(66,720

)

Preferred stock deemed dividend

--

(8,469

)

--

(8,469

)

Net loss allocable to common stockholders

$

(22,286

)

$

(21,525

)

$

(90,722

)

$

(75,189

)

Basic and diluted net loss per share allocable to common stockholders

$

(0.85

)

$

(0.91

)

$

(3.45

)

$

(3.83

)

Shares used to compute basic and diluted net loss per share allocable to common stockholders